PNC Financial Services Group Inc (NYSE:PNC) beaten the earnings estimates

PNC Financial Services Group Inc (NYSE:PNC) stock fell 1.83% (As on Jan 19, 11:13:21 AM UTC-4, Source: Google Finance) though the company beaten the earnings estimates for fourth quarter of 2021. The company’s bottom line totaled $1.22 billion for the fourth quarter of 2021, compared with $1.39 billion, in last year’s fourth quarter. PNC acquired BBVA USA on June 1, 2021, adding approximately 2.6 million customers, 9,000 employees and over 600 branches across seven states. Full year 2021 financial results include the addition of BBVA USA operations since June 1, 2021. Since the announcement of the acquisition, PNC has incurred $925 million of merger and integration costs, including $120 million in write-offs of capitalized items, or approximately 95% of the $980 million expected.

Moreover, the net interest income of $2.9 billion for the fourth quarter of 2021 increased $6 million compared to the third quarter of 2021 primarily driven by higher securities balances. In comparison with the fourth quarter of 2020, net interest income increased $438 million as a result of higher interest earning assets, partially offset by lower securities yields. The net interest margin was 2.27% for both the fourth and third quarter of 2021 and 2.32% in the fourth quarter of 2020. Compared to the fourth quarter of 2020, the decrease was driven by lower securities yields. Average total assets were $560.3 billion in the fourth quarter of 2021 compared with $559.2 billion in the third quarter of 2021 and $465.0 billion in the fourth quarter of 2020. Compared to the fourth quarter of 2020, the increase was primarily driven by the BBVA USA acquisition. Average loans for the fourth quarter of 2021 were $288.9 billion, decreasing $2.4 billion compared to the third quarter of 2021. Average commercial loans decreased $2.5 billion driven by PPP loan forgiveness of $4.7 billion, partially offset by growth in PNC corporate banking and business credit businesses. Average consumer loans of $95.1 billion increased modestly driven by growth in residential mortgage loans largely offset by declines in home equity and auto loans. Average loans for the fourth quarter of 2021 increased $43.1 billion compared to the fourth quarter of 2020.

PNC in the fourth quarter of 2021 has reported the adjusted earnings per share of $3.68, beating the analysts’ estimates for the adjusted earnings per share of $3.16, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 21.9 percent to $5.13 billion in the fourth quarter of 2021, from $4.21 billion last year.

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